DOING BUSINESS IN WYOMING IN 2023
Since 2003, Healy Consultants Group assists multinational Clients to set up companies around the world, including Wyoming. Our Wyoming services include i) company registration ii) corporate bank account opening with a top-tier USA bank iii) employee recruitment iv) visa strategies and v) office rental solutions.
|Compare different Wyoming entities||Limited liability company||Limited partnership||C-Corporation||Trust|
|Also known as||Wyoming LLC||LP||C-Corp||Trust|
|Best use of company?||All products/ services||Real Estate Planning||Trading||Tax planning|
|How long to supply company registration/tax numbers?||2 weeks||5 business days||1 week||5 business days|
|How long to supply a regulatory licence?||Not required||Not required||Not required||Not required|
|How soon can you invoice Clients/sign sales contracts?||2 weeks||1 week||1 week||Cannot trade|
|How soon can you hire staff?||2 weeks||2 weeks||2 weeks||Cannot hire|
|How soon can you sign a lease agreement?||Immediately||Immediately||Immediately||Not allowed|
|How long to supply corporate bank account numbers?||4 weeks||4 weeks||4 weeks||4 weeks|
|Corporate tax rate on annual net profits if properly structured?||0%||0%||0%||0%|
|Limited liability entity?||Yes||Yes||Yes||No|
|Government grants available?||Yes||Yes||Yes||No|
|Government approval required for foreign owners?||No||No||No||No|
|Resident director/partner/manager/legal representative required?||No||No||No||No|
|Minimum paid up share capital?||US$1||US$1||US$1||US$1|
|Can bid for Government contracts?||Yes||Yes||Yes||No|
|Corporate bank account location?||JP Morgan Chase||City National Bank||Wells Fargo||Citibank|
|Can secure trade finance?||Yes||Yes||Yes||No|
|VAT payable on sales to local customers?||4%||4%||4%||None|
|Average total business set up engagement costs?||US$8,900||US$9,015||US$9,480||US$13,830|
|Average total engagement period?||2 months||2 months||2 months||2 months|
Wyoming setup summary
Benefits of Wyoming company registration
- A Wyoming company is quick and easy to set up. For example:
- It only needs a single individual shareholder and director, who can be of any nationality and need not be resident in Wyoming.
- The company can be incorporated online in just one day, if required.
- It is possible to open a corporate bank account without travelling in person to Wyoming.
- A Wyoming company does not need a business licence, regardless of its activities.
- A Wyoming business does not need to wait for an Employer Identification Number (EIN) before being incorporated. However, a bank account can only be obtained after company incorporation and the EIN is approved.
- Wyoming is consistently ranked one of the US’ most business-friendly tax environments because:
- There are no state income taxes. Federal tax rules apply.
- There are no inventory, franchise, occupation or value added taxes.
- A Wyoming LLC can choose to be taxed either as i) a corporation (if it has one or more shareholders) ii) a partnership (if it has two or more shareholders) or iii) a disregarded entity (if it has only one shareholder). If the LLC is taxed as a partnership or as a disregarded entity, its income suffers no corporate tax. Instead, the income will flow through to the shareholders, who will pay personal tax.
- There are specific tax breaks to attract investments in i) agritech ii) blockchain iii) data centres and tech and iv) wind energy and v) manufacturing.
- Wyoming enjoys a positive relationship with the IRS. As a result, it is unlikely that the shareholders and premises of a Wyoming company will be selected for a field audit, unlike, for example, those in Nevada.
- Wyoming is great for start-ups, because:
- A range of incentives, grants and finance schemes are available. For example, the Small Business Innovation Research (SBIR) Program offers tech investors fund matching of up to US$200,000 on qualifying projects.
- The Enhanced Capital Wyoming Fund, which offers alternative capital source to entrepreneurs and small businesses relocating to Wyoming from another state.
- It has an entrepreneurial culture. Organisations such as the Wyoming Small Business Development Network, for example, assist start-ups to secure innovation funding and government contracts.
- Wyoming is cheaper to set up and operate a business than Nevada and Delaware, two other well-known tax-efficient US states (see comparison article here). For example:
- Wyoming filing fees for incorporation are just US$100 (US$425 in Nevada).
- Annual government filing fees for a Wyoming company are just US$50 (US$350 and US$300 in Nevada and Delaware respectively).
- Because it is the US’ largest energy producer and exporter, Wyoming has some of the lowest utility costs in the US. This makes it especially attractive for energy-intensive industrial, commercial and agricultural projects.
- Office rental and warehouse rates in Wyoming are lower than in many other states.
- Average salaries in Wyoming are lower than Delaware, and significantly lower than Nevada.
- Wyoming offers several ‘project-ready industrial sites to investors. For foreign investors and investors from outside the state, this is attractive to manufacturers considering relocating from other states, and significantly decreases project start up time.
- Compared to Nevada, a Wyoming company does not need to prepare an annual report until the incorporation anniversary. A Wyoming company is therefore easier to administer.
- 7.1% of Wyoming’s workforce are members of a trade union, compared with 11.1% nationally. Consequently, businesses in the state are less likely to suffer workplace disruption or strikes.
- Wyoming is one of the best places in the US to protect assets. Multinational Clients can protect assets by forming a simple LLC, an Asset Protection Trust or a Private Trust Company, or combinations of these vehicles.
- The Wyoming C-Corp structure is the most appropriate corporate vehicle for raising funds from a large number of investors (e g public offering).
- A Wyoming company is quick and easy to set up. For example:
Problems with Wyoming company registration
- All foreign and domestic corporations in Wyoming must file an annual report, detailing their business activities, with the Secretary of State. Although the filing fee is just US$50, this is an unwelcome administrative burden.
- Because it is a low-tax jurisdiction, Wyoming may be negatively perceived as a tax neutral jurisdiction to international Clients and banks.
- Because there is no public record of directors and shareholders of a Wyoming company, it is more difficult to list on international stock exchanges.
- Wyoming has some of the country’s slowest internet speeds. This hinders business and deters, in particular, e-commerce businesses.
- Regardless of whether a Wyoming company employs staff or not, it is necessary to file a nil Employer’s Quarterly Federal Tax return Form 941 to the Government (this requirement however does not apply to all USA States).
- Most top tier banks in the United States of America now require the bank signatory to travel to a branch of the bank in America to hold a mandatory KYC meeting with a bank officer. We however know alternative no travel solutions.
Best uses of a Wyoming company
To take advantage of tax breaks and other incentives in i) agritech ii) blockchain iii) data centres and tech and iv) wind energy and v) manufacturing.